TAX TIP TUESDAY

  Why You Should Always File Your Tax Return It’s easy to put off filing your taxes. Maybe you’ve put it off for several years and see no point in starting now. It’s likely either you or someone you know has gone years without filing, and nothing happened; or maybe your missed filing is a constant dark cloud that revisits you this time every year. Whatever the case may be…  Read more

TAX TIP TUESDAY

EXCESS BUSINESS LOSSES AND THE NEW NET OPERATING LOSS RULES By Phylicia Buie, MST 2/5/2019 12:00 PM EST The IRS changed a lot of of rules with the 2018 tax reform Tax Cuts and Jobs Act (TCJA). It’s all tax people can talk about. Bear with us, we haven’t had anything this exciting happen in the tax world since the conviction of Al Capone back in the 30s! We’re hoping…  Read more

Start of Tax Season Newsletter

  Tax season 2019 is finally here and we’ve got 5 easy steps that will make your tax preparation go smoothly this year: Get Ready Get Started Stay Alert Review Your Return Sign & File   Click here to read more. Click here to download your copy of the 2019 tax season deadlines.      Read more

TAX TIP TUESDAY

Entertainment, Bonus Depreciation and Net Operating Losses By Phylicia Buie, MST 1/15/2019 12:00PM EST As part of the 2018 Tax Cuts and Jobs Act (TCJA), businesses will be facing new tax rules regarding the deductibility to many of their ordinary expenses. Although the tax reform was passed just over a year ago, it has taken the IRS nearly all of 2018 to interpret and provide guidance on these new rules…  Read more

Tax Filing Season Begins January 28th

January 28th, 2019 Start of IRS Tax Season: First Day to Transmit Individual and Business Tax Year 2018 Returns  April 15th, 2019 Tax Deadline – Last Day to File Individual Income Tax Returns Timely Without an Extension Read Full Article Here – 2018 Tax Filing Season Begins January 28  Read more

Tax Tip Tuesday

  The 2019 Government Shutdown By Phylicia Buie, MST 1/8/2019 10:35 AM EST As the partial government shutdown extends into it’s third week, the Internal Revenue Service has sent nearly 90 percent of its workforce home without pay (according to the contingency plan published by the agency in December.) The IRS has yet to update this plan and continues to direct news outlets to the lapsed plan from December. The…  Read more

Wondering why your receiving more money in your paycheck since February?

The IRS has released a new version of Form W-4 and a revised Withholding Calculator on irs.gov (IR-2018-36). These updated tools can help you check your 2018 tax withholding to determine if it’s still appropriate following passage of the Tax Cuts and Jobs Act in December 2017. The IRS urges taxpayers to use these tools to make sure they have the right amount of tax withheld from their paychecks, taking…  Read more

IRS Releases Updated Form W-4 and Withholding Calculator

The IRS has released a new version of Form W-4 and a revised Withholding Calculator on irs.gov (IR-2018-36). These updated tools can help you check your 2018 tax withholding to determine if it’s still appropriate following passage of the Tax Cuts and Jobs Act in December 2017. The IRS urges taxpayers to use these tools to make sure they have the right amount of tax withheld from their paychecks, taking…  Read more

Federal Income Tax Returns Due for Most Individuals

The federal income tax filing deadline for most individuals is Tuesday, April 17, 2018. That’s because April 15 falls on a Sunday, and  Emancipation Day, a legal holiday in Washington, D.C., falls on Monday, April 16, this year. Need more time? If you’re not able to file your federal income tax return by the due date, you can  file for an extension using IRS Form 4868, Application for Automatic Extension…  Read more

What is a qualified domestic relations order (QDRO) and how could it effect your income tax?

A qualified domestic relations order (QDRO) is a court judgment, decree, or order establishing the marital property rights of a spouse, former spouse, child, or dependent of a pension plan participant with respect to certain qualified retirement plans. Several requirements and restrictions apply. To what extent are retirement assets subject to divorce court jurisdiction? A retirement plan is a form of property. Like houses, cars, and bank accounts, a retirement…  Read more

Are alimony payments considered taxable income?

Alimony is a support payment made to a former (or separated) spouse under a divorce decree or separation instrument in an attempt to maintain the predivorce lifestyle. Alimony is sometimes called maintenance. Simply stated, for pre-2018 divorces, alimony is taxable income to the one who receives it and tax deductible to the one who pays it. However, the divorce agreement can designate alimony as nontaxable and nondeductible. For post-2017 divorces,…  Read more

Tax Planning with Life Insurance

What is tax planning with life insurance? Life insurance can help you achieve various goals. Tax planning with life insurance involves minimizing the tax consequences of your life insurance decisions. Tax planning vehicles involving life insurance will vary, depending on the form of insurance coverage you select. In order to make informed insurance tax planning decisions, you must understand topics such as the tax-deferred buildup of cash value, the taxation…  Read more

Understanding Personal Tax Credits

Have you ever thought that you’re paying too much income tax? You may be, if you’re not claiming all of the tax credits for which you are eligible when you file your federal tax return. These credits may significantly reduce your tax liability. What is a tax credit? A tax credit is a dollar-for-dollar reduction of your tax liability. Generally, after you’ve calculated your federal taxable income and worked out…  Read more

Dependency Exemptions: Divorce

What is a child dependency exemption? If a separated or divorcing couple has children, an important tax decision involves assignment of the child dependency exemption. Exemptions are fixed amounts that you subtract from your adjusted gross income (AGI) to calculate taxable income. You can deduct $4,050 for each exemption you claim (for 2016 and 2017). Along with personal exemptions, you’re generally allowed one exemption for each person you can claim…  Read more

Tax Planning for the Self-Employed

Self-employment is the opportunity to be your own boss, to come and go as you please, and oh yes, to establish a lifelong bond with your accountant. If you’re self-employed, you’ll need to pay your own FICA taxes and take charge of your own retirement plan, among other things. Here are some planning tips. Understand self-employment tax and how it’s calculated As a starting point, make sure that you understand…  Read more

Crowdfunding 101: Is it Deductible?

Article by Jeff Wilson II Crowdfunding 101 Is It Deductible published on Intuit’s Tax Pro Center Crowdfunding is good for our clients who want to raise funds for a particular project, invention or venture. What makes crowdfunding so unique is that it is traditionally used to raise “material” amounts of capital that a client or organization would otherwise be required to register with the SEC, and go through costly compliance and…  Read more

Installment Sales: Tax Planning

What is it? An installment sale, sometimes used when a small business or real estate is sold, is defined as a sale of property where at least one payment is to be received after the close of the tax year in which the sale occurs. In other words, rather than receiving the proceeds at the time of the sale, you typically receive a series of payments spread out over several…  Read more

Am I Having Enough Withheld?

If you fail to estimate your federal income tax withholding properly, it may cost you in a variety of ways. If you receive an income tax refund, it essentially means that you provided the IRS with an interest-free loan during the year. By comparison, if you owe taxes when you file your return, you may have to scramble for cash at tax time–and possibly owe interest and penalties to the…  Read more

Tax Withholding as Forced Savings

What is it? You work, you receive a regular paycheck, and your employer withholds a portion of your earnings to pay federal income taxes. The amount your employer withholds is based on your filing status and number of exemptions you claimed on your W-4 form. You hate to pay taxes at the end of the year, so last year you claimed fewer exemptions than those to which you were entitled.…  Read more

Tax Consequences if Business Generates Income or Loss

What are the tax consequences if a business generates income or loss? When a business generates income or loss, the tax ramifications for the business and the business owner will depend on the type of business entity selected. Some businesses pay taxes themselves on business income, while others act as conduit or pass-through entities, making their owners responsible for paying taxes on the business income. The concept of tax basis…  Read more

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